IPEF talks’ secrecy, limited public input key concerns: GTRI
Economic Framework for Prosperity (IPEF) negotiations have mostly been conducted in secrecy with limited public input and it raises concerns whether the member countries, including India, were able to protect their key interests, think tank Global Trade Research Initiative (GTRI) said Sunday. It cautioned that the commitments related to the effective administration of tax policy might curtail the ability to raise tax revenue.
It said in the supply chain pillar, a major issue is whether the agreement might restrict members from trading critical materials, particularly with China as this could pose challenges for Association of SouthEast Asian Nations (Asean) countries, whose largest trading partner is China.
“It is hoped that India has negotiated enough flexibility to avoid strict clauses, such as the not to use export restrictions. These are critical during emergencies, as no country can be expected to supply essential goods when facing its own crisis,” GTRI Founder Ajay Srivastava said.
In the clean economy pillar, he hoped that India has not agreed to a “non-derogation clause” which would prevent the government from easing domestic regulations for projects of national importance.
“Such flexibility is essential for India to pursue key infrastructure projects without being hindered by rigid international commitments,” he said, adding that there is concern that India might have committed to minimum standards for clean energy technologies in the domestic market, which could force reliance on imports and negatively
